Callable Fund

Private partnership funds are one of the great engines of capitalism, with more than $10T in assets. They make long term investments in technology, infrastructure, and efficiency that can grow over time to have great value and touch all of our lives. They often improve cash efficiency by "calling" capital only when they are ready to make an underlying investment. They "self liquidate" by returning funds as they exit underlying investments. This recipe is difficult to beat. However, in recent years it has suffered from a lack of liquidity. The underlying assets have become more difficult to sell. This has motivated the growth of secondary sales, large traded funds, and "evergreen" funds that can take deposits and make redemptions or secondary sales on the fly.

A Stak Callable Fund is an experiment in offering a liquid vault that can fund long term investments.

In the right applications, it will have:

• Good agility. Investors have a simple and low risk way to commit funds. The fund can deploy cash on one week's notice

• Reasonable cash efficiency. Deposits earn competitive money market returns before they are called. Funds are returned immediately after exit through buybacks

• Alignment with managers. Managers can make a share of profits

• Potentially good liquidity. In its initial state, the token represents a redeemable investment in a USD yield pool. If the pool is big enough, the token will be useful for trading and collateral. In its final state, the fund may be invested in a large enough set of assets to have a predictable average value - like today's large traded funds.

How It Works

Depositors get a vault token with an option to redeem at deposit value.

The fund can call and vest some percentage of the redeemable tokens with seven days notice. Depositors can use this information to decide if they want to exercise their option to redeem, or sell if the token secondary price is greater than their redemption value. Through this process, the fund incrementally vests from depositors and invests in the target assets.

The fund returns value with token buybacks and burns.

The fund can sell new tokens incrementally. Tokens should be sold at market price, plus a deposit fee that pays for the redemption option.

The fund is designed to have economics similar to a PE fund. A small amount of interest earnings and vested assets will be authorized to pay expenses. Managers can get upside from warrants.

[Show stairstep vesting]